aker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 190 units from the January 30 purchase, 5 units from the January 20 purchase, and 20 units from beginning inventory.

Date	Activities	Units Acquired at Cost	Units sold at Retail
January 1	Beginning inventory	145	units	@	$ 7.00	=	$ 1,015
January 10	Sales							105	units	@	$ 16.00
January 20	Purchase	70	units	@	$ 6.00	=	420
January 25	Sales							85	units	@	$ 16.00
January 30	Purchase	190	units	@	$ 5.50	=	1,045
	Totals	405	units				$ 2,480	190	units

Assume the periodic inventory system is used.

Required:

1. Compute gross profit for the month of January for Laker Company for the four inventory methods using the periodic inventory system.
2. Which method yields the highest gross profit?
3. Does gross profit using weighted average fall between that using FIFO and LIFO?
4. If costs were rising instead of falling, which method would yield the highest gross profit?